The ongoing conflict in West Asia, sparked by joint United States-Israeli military strikes on Iran on February 28, 2026, now stretches well into its second month. It extends beyond a regional geopolitical crisis. Its cascading economic consequences mark a civilisational disruption, sending tremors across continents and economies far removed from the theatre of war. 

Kashmir’s cottage industry, long the cultural spine and economic lifeline of the valley, now faces a moment that could undo years of painstaking recovery.

Understanding the vulnerability of Kashmir’s handicraft economy begins with grasping the scale of the catastrophe unfolding in West Asia.

Operation Epic Fury, the name assigned by the United States to the joint military campaign, has assassinated Supreme Leader Ali Khamenei and dismantled significant parts of the Iranian state apparatus. The offensive has also unleashed a war of unprecedented regional breadth. 

Iran’s retaliatory strikes now target all six Gulf Cooperation Council states, including Bahrain, Kuwait, Qatar, Saudi Arabia, Oman, and the UAE, marking the first instance in modern history of Tehran directly engaging all its Gulf neighbours at once.

The strategic and economic heart of this crisis lies in the Strait of Hormuz. 

In 2025, roughly 25 percent of the world’s seaborne oil trade passed through this narrow passage, along with over 110 billion cubic metres of liquefied natural gas, representing nearly 20 percent of global supply, much of it from Qatar. Iranian military operations have slowed commercial traffic in the strait to a near standstill. 

The International Energy Agency describes the resulting disruption as the “largest supply disruption in the history of the global oil market.” Brent crude, which traded around $70 per barrel before the conflict, has surged past $110 per barrel, with volatile price swings fueling fears of a global energy crisis.

Amid this backdrop of geopolitical conflagration, Kashmir’s cottage industry occupies a particularly exposed position. 

The valley’s artisans have crafted their livelihoods from the finest materials, including Pashmina and Kani shawls, hand-knotted silk and woollen carpets, papier-mâché,........

© Kashmir Observer